Oil company Denbury Inc. is exploring options including putting itself up for sale, Bloomberg News reported on Aug. 17, citing people with knowledge of the matter.
The Plano, Texas-based firm, which has a $3.9 billion market cap, is working with an adviser to consider its strategic options, Bloomberg reported.
Denbury’s shares were up 11% at $87.86 in afternoon trading.
The company declined to comment when contacted by Reuters.
Denbury, which exited bankruptcy in September 2020, extracts oil from the Gulf Coast and Rocky Mountains regions using EOR, a process in which carbon dioxide is injected into existing oil fields to push trapped oil out of the ground.
Investors are not paying anywhere near the full value of Denbury’s carbon capture business, MKM Partners analyst Leo Mariani wrote in a note. He added that the company still has hidden value in its CO₂ pipelines.
About 95% of carbon capture and storage capacity in the U.S. is for EOR, according to data from the Global CCS Institute last year.
Recommended Reading
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
Beth McDonald Appointed SM Energy COO
2024-09-09 - Beth McDonald joins SM Energy as its new executive vice president and COO, bringing with her about 20 years of experience as an executive at Pioneer Natural Resources.
Quantum’s VanLoh: New ‘Wave’ of Private Equity Investment Unlikely
2024-10-10 - Private equity titan Wil VanLoh, founder of Quantum Capital Group, shares his perspective on the dearth of oil and gas exploration, family office and private equity funding limitations and where M&A is headed next.
Baker Hughes Updates Leadership to Deliver on Growth Strategy
2024-09-04 - Baker Hughes’ updates to its leadership team will go into effect on Oct. 1.
ConocoPhillips Adds Connors to Board
2024-09-05 - Nelda J. Connors will serve on the audit and finance committee and public policy and sustainability committee of ConocoPhillips’ board.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.